Stephens resumed coverage of Chipotle with an Equal Weight rating and $3,010 price target. The company separates itself from its fast casual dining peers through best-in-class execution and offers impressive unit economics in its company-owned stores coupled with expanding digital offerings, the analyst tells investors in a research note. Chipotle’s robust balance sheet also supports both the continual funding of increased units and returning cash to shareholders through share repurchases, the firm adds. Stephens notes however that the stock trades at an enterprise value multiple of 35-times expected next-12-months EBITDA vs. its 10-year average multiple of 23.5-times.
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